Moody's rates Kimball Hill notes B3

Moody's Investors Service said it assigned ratings to Kimball Hill Inc., including a B1 corporate family rating and a B3 rating on the proposed $200 million issue of senior subordinated notes.

The outlook is positive.

The ratings reflect the company's moderately heavy debt leverage position, relatively smaller size and scale than the typical Ba homebuilding company, earnings concentration, proportion of speculative building and the cyclical nature of the homebuilding industry, the agency said.

Moody's said the ratings also recognize that Kimball Hill scores within acceptable to strong ranges for its rating on many of the financial metrics outlined in the Moody's Homebuilding Methodology and the company's capital structure has evolved away from one that was formerly top heavy with secured debt.

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